Zur Shamir publishes its Q2 2026 results

Subsidiary highlights — Q2 2026

• IDI Insurance: Comprehensive income for the quarter reached a record ~NIS 117 million, growth of ~16% vs. the corresponding quarter last year, thanks to the continued focus on executing the strategy.
• Direct Finance (Mimun Yashir): Loan originations to customers in the quarter totaled ~NIS 3.1 billion, growth of ~29% YoY; net income from finance operations totaled ~NIS 345 million, growth of ~38% YoY; net income attributable to shareholders grew more than fourfold YoY to ~NIS 69 million.
• Adgar: NOI from comparable properties (excluding FX effects) declined ~1.6% YoY in the quarter; FFO for the quarter totaled ~NIS 23 million and net income for the quarter totaled ~NIS 35 million, an increase of ~36% vs. the corresponding quarter, positively impacted by finance income arising from the company’s hedging policy.
• Neema: The company turned profitable for the first time in Q2, posting pre-tax profit of ~NIS 1.2 million, alongside revenue growth of ~42% to ~NIS 43 million. The shift to profitability reflects continued growth in activity volumes, with the first half recording ~23% growth in the customer base and ~62% growth in the number of active cards versus the corresponding period, alongside improvements in the company’s business and technological infrastructure.

We are pleased to present another quarter that reflects the strength of the group’s companies and the contribution of our key growth engines. IDI Insurance and Direct Finance delivered record results, and Neema turned profitable for the first time in Q2 — a significant milestone in its development.

Alongside this, Adgar’s operating results continue to be affected by the strengthening of the shekel against the euro and the Canadian dollar, with the company’s hedging strategy moderating part of the impact. We will continue to focus on growth, efficiency and enhancing the value of our holdings, in order to generate sustained value for shareholders.

The significant step change recorded by the group’s companies this quarter — particularly in insurance, finance and Neema — demonstrates the resilience of Zur Shamir and the advantages of a diversified portfolio.

Alongside coping with macro challenges, including the strengthening of the shekel and the rise in the Consumer Price Index (CPI), we continue to act with a long-term view, while maintaining responsible financial management and a balance between the group’s growth engines. This combination provides a solid basis for continued value creation for shareholders.

Comprehensive income attributable to shareholders totaled ~NIS 6 million in the quarter, compared with ~NIS 7 million in the corresponding quarter last year. Profit for the first half of the year grew by ~16% YoY to ~NIS 39 million. Profit in the quarter was affected by a one-off (non-representative) increase in expenses.

Shareholders’ equity attributable to owners of the company stood at ~NIS 762 million as of June 30, 2026, compared with ~NIS 770 million at year-end 2025, after the distribution of a dividend of NIS 51 million since the start of the year. The company will distribute a dividend of NIS 6 million in respect of Q2 2026 profits.

Highlights of Q2 — IDI Insurance

• Gross premiums in Q2 totaled ~NIS 906.1 million, compared with ~NIS 924.5 million in the corresponding quarter last year. The decline in gross premiums was driven mainly by lower motor property insurance prices on the one hand, and, on the other, by an increase in the scope of activity across all lines in which the company operates, reflected primarily in growth in the number of customers and in the number of coverages per customer.
• Comprehensive income in Q2 totaled ~NIS 117.2 million, compared with ~NIS 101.2 million in the corresponding quarter last year.
• The company announced a dividend distribution of ~NIS 80 million.

Highlights of Q2 — Direct Finance (Mimun Yashir)

• Loan originations to customers in Q2 totaled ~NIS 3.142 billion, compared with ~NIS 2.434 billion in the corresponding quarter last year, growth of ~29%.
• Net income from finance operations in Q2 totaled ~NIS 344.7 million, compared with ~NIS 249.1 million in the corresponding quarter last year, growth of ~38%.
• Net income attributable to shareholders in Q2 totaled ~NIS 68.8 million, compared with ~NIS 16 million in the corresponding quarter last year, growth of ~329%.
• As of June 30, 2026, the balance of the loan portfolio originated by Direct Finance totaled ~NIS 20.2 billion (including loan portfolios assigned to third parties), compared with ~NIS 16.4 billion as of June 30, 2025.
• In Q2, assignment transactions of ~NIS 1.038 billion were carried out in the auto loans segment, as well as a securitization transaction of ~NIS 299 million in the mortgage company. Direct Finance’s loan portfolio not assigned to third parties totaled ~NIS 10.3 billion as of June 30, 2026, compared with ~NIS 8.7 billion as of June 30, 2025.
• The company announced a dividend distribution of ~NIS 48 million.

Highlights of Q2 — Adgar

• NOI for the quarter totaled ~NIS 67.4 million, compared with ~NIS 76.2 million in the corresponding quarter last year. The decrease stems mainly from the decline in exchange rates. NOI from comparable properties, excluding FX effects, declined ~1.6% YoY in the quarter.
• FFO for the quarter totaled ~NIS 22.8 million, compared with ~NIS 30.3 million in the corresponding quarter last year. The decline stems mainly from the strengthening of the shekel, from the decrease in NOI and from the cessation of capitalization of finance costs in respect of an asset under construction.
• Shareholders’ equity attributable to owners of the company totaled ~NIS 1.55 billion as of June 30, 2026, compared with ~NIS 1.61 billion at year-end 2025. The decline in equity was partially offset thanks to the company’s hedging policy.
• Net income for the quarter totaled ~NIS 35 million, compared with ~NIS 25.7 million in the corresponding quarter last year. The increase in profit stemmed mainly from a decrease in net finance expenses, as a result of income from exchange rate differences and exchange rate hedging transactions.
• The company’s comprehensive loss for the quarter of ~NIS 38.4 million was affected by a loss of ~NIS 115 million from foreign currency translation adjustments. Conversely, the loss was significantly offset thanks to a gain from hedging transactions of ~NIS 43.4 million, net after tax, and an additional gain of ~NIS 36.3 million, net, that does not qualify for hedge accounting and is presented in net income.
• The equity-to-total-assets ratio stood at ~30.1%.
• The company announced a dividend distribution of ~NIS 11.5 million.

Highlights of Q2 — Neema

• Neema’s revenues grew ~42% in the quarter, totaling ~NIS 43 million compared with ~NIS 30 million in the corresponding quarter last year. The growth in revenues stems from an increase in digital account activity, primarily from money management and money transfers by Neema customers, as well as from growth in the number of customers.
• The company now benefits from a direct connection to Israel’s payment system, technological development of an internal mechanism for routing transactions between payment providers, improvements to material commercial contracts, and the expansion of direct engagements with payment providers in target countries, alongside a price update carried out at the end of the quarter.
• Neema posted pre-tax profit of ~NIS 1.2 million, compared with a loss of ~NIS 4.9 million in the corresponding quarter last year. The shift to profitability stems from the company’s continued accelerated growth.

Group asset value — book value, market NAV and external valuation (PwC)

All figures in NIS millions (except per-share values, holding shares, and discount).

• ^* Calculated based on closing prices on the Tel Aviv Stock Exchange as of 26.08.2026.
• ^** Based on an external valuation as of December 31, 2025, conducted by PwC Israel.
• ^*** Holding shares reflect the direct holding in the shares of the subsidiaries by Direct Holdings, Direct Insurance and the company.
• ^[1] At Zur — gross financial debt of ~NIS 1,387 million less cash and securities totaling ~NIS 399 million. At Direct Insurance — gross financial debt of ~NIS 525 million less cash and securities totaling ~NIS 270 million. At Direct Holdings — cash and cash equivalents of ~NIS 15 million.

About the company

Zur Shamir is a leading holding company investing in insurance, finance, income-producing real estate and global financial services. The company holds, through Direct Insurance — Financial Investments (88%), ~41% of IDI Insurance, the pioneer of direct insurance in Israel, operating for over 30 years and the largest in its field. In addition, it holds ~44% of Direct Finance (Mimun Yashir), the leading company in auto loans and a growing mortgage lender; ~54% of Adgar, which operates in income-producing real estate with assets totaling over NIS 5 billion. The company also has a direct holding of ~4% in Adgar. In addition, Direct Insurance holds ~98% of Neema, which engages, inter alia, in global financial services, including via a money-transfer application.